Trade deal overcomes drugs hurdle

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Dissident Democrats have attacked concessions to pharmaceutical companies in the US-Australia free trade agreement, but failed to stop it passing the US House of Representatives by an overwhelming majority.

The agreement is now expected to be passed by the Senate today. Members of the Senate Finance Committee, including Senator John Kerry, who voted by proxy, supported the agreement 17 to 4, clearing the way for full Senate approval.

The deal passed the House by 314 votes to 109, despite a group of impassioned Democrats arguing it would undermine congressional efforts to secure more affordable drugs for Americans by including a clause prohibiting the importation of cheaper drugs from Australia.

"This is a bill engineered by the pharmaceutical lobby", said Democrat Peter Stark from California, who argued that the US trade representative, Bob Zoellick, would use the same clause in future trade negotiations.

The Prime Minister, John Howard, yesterday turned up the heat on the Labor leader, Mark Latham, to approve the deal.

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"If he takes this long in Opposition to make up his mind on a difficult issue, what would he be like on difficult issues if he were to become prime minister," Mr Howard said.

But Mr Latham kept his options open. "If it's a plus for Australia, we'll pass it; if overall it is a negative for Australia, then we won't," he said.

Labor sources said about 40 per cent of caucus members opposed the trade deal. But a smaller group, led by trade spokesman Stephen Conroy and defence spokesman Kim Beazley, is urging colleagues to support it.

"The decisive debate will come inside the Labor caucus over the next few weeks and Mark Latham will be a critical factor in determining whether Labor supports this or not," Senator Conroy said yesterday.

US congressional support for the trade deal came from a wide range of Democrats as well as Republicans who praised Australia's labour and environmental record as well as its support for the US in Iraq and Afghanistan.

"No two countries are closer in terms of their views of the world," said Republican Bill Thomas of California. "This agreement is long overdue."

Supporters of the agreement claimed it would boost US exports to Australia, especially in manufacturing and agriculture, including fruit, dairy goods, wine and even Kentucky bourbon and tobacco.

Republicans from Florida, who succeeded in getting sugar dropped from the agreement, turned out in strong support of the agreement.

Republican Mario Diaz-Balart said anyone who opposed the agreement had "too many kangaroos loose in the top paddock".